SAL in the media
LANDLORD ZONE BLOG: ‘Don’t punish Scottish landlords for doing the right thing’ by John Blackwood, SAL chief executive
By amending the Housing Bill to allow landlords in Scotland’s private rented sector to increase rents above inflation, or up to 6% in rent control areas, Housing Minister Paul McLennan has given us a ray of hope.
Had the bill gone through unamended, the effects of its rent controls would have been disastrous, worsening our supply problems and causing an exodus of properties as landlords made tough business decisions.
However, we are still not out of trouble. We need more support so that everyone in Scotland can access a flexible, suitable home, when they need it. Landlords must be able to adjust rents between tenancies to avoid ridiculous situations.
Relationships
As professional landlords, we develop excellent relationships with our tenants and their families. This often results in choosing to keep rents artificially low. Our members also report that they have done this to support their tenants through difficult times, like the pandemic.
At the end of a tenancy, it would be absurd for the landlord to be prevented from bringing the rent back up to a market rate – but that is the situation the current proposals would create. It is essentially punishing us for doing the right thing for our existing tenants. This would be a great disincentive to existing and potential landlords, and likely further threaten supply while driving up costs.
Positive
Scotland faces a housing crisis. It is a positive step that, as a country, we have acknowledged that and can now begin tackling it. Accepting that there is a problem is the first step in solving one. Now we need our policymakers to act to right the wrongs that have been foisted upon our sector in recent years; ill-considered policies that have only exacerbated the housing crisis.
A solution will need cooperation between politicians and the sector, and that includes all landlords, and indeed all our SAL members.
Co-working
We have the practical knowledge, experience, and insight to fix the problems we face together. However, that spirit of co-working will not materialise if politicians continue to listen to those with ideological special interests and axes to grind who lack industry insight; the well from which ideas like freezing rents in between tenancies and rent controls spring.
Housing in Scotland needs help. As a housing sector, political parties, and government, we must give it that help, together.
John Blackwood is CEO of the Scottish Association of Landlords
You can also read this online article on Landlord Zone here.
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